To install opentofu, please goto this link here . I am using windows so i am downloading my windows binaries. We are going to use azurerm provider and to do that, we are going to authenticate using a service principal, but you can choose to use other methods as well. Open powershell terminal, fill in your azure service principal and other info and run the following command: $env:ARM_CLIENT_ID= "" $env:ARM_CLIENT_SECRET= "" $env:ARM_TENANT_ID = "" $env:ARM_SUBSCRIPTION_ID= "" Create a main.tf file with the following contents terraform { required_providers { azurerm = { source = "hashicorp/azurerm" version = "4.0.1" } } } provider "azurerm" { features {} } resource "azurerm_resource_group" "rg" { location = "australiaeast" name = "mytestrg" } Then run the following tofu init Next, run tofu plan to see what opentofu is about to c